Practice question
A taxpayer’s records are materially incomplete. The BIR seeks reliable third-party business records to reconstruct taxable activity, but counsel says only evidence already admissible at a full regular-court trial may even be considered administratively. Which is sound?
- Third-party sources are universally forbidden
- Incomplete books eliminate every tax
- Any anonymous unverified figure must be accepted
- Hantex permits appropriate other sources administratively, subject to trustworthiness and a real factual basis
- The taxpayer’s omission proves any chosen assessment amount
Legal references
- CIR v. Hantex Trading Co., Inc., G.R. No. 136975, March 31, 2005, main decision: https://lawphil.net/judjuris/juri2005/mar2005/gr_136975_2005.html
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